ECB Vice President Guindos commented that despite evidence that the disinflationary process in the Eurozone was “well underway”, there were substantial risks around the price outlook, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
EUR remains in a tight range at lows 1.08
“The comments are perhaps a further indication that ECB officials are not willing to ease policy as aggressively as market participants expect at this time.”
“Swaps continue to price easing risk of around 35 basis points for the December policy decision, which seems a bit high based on more cautious messages from officials last week. November Gfk Consumer Sentiment improved to a slightly better-than-expected –18.3 in November.”
“EUR/USD continues to consolidate. The recent trading pattern does not exclude further losses, but the EUR remains deeply oversold and the risk of a short squeeze should not be underestimated. Note that the daily RSI signal is rising marginally, reversing from levels overextended. This is a potentially positive sign.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
